Category: Terminology

In payments, a Card-On-File (COF) transaction refers to a payment arrangement where a customer authorizes a merchant or service provider to securely store their payment card information for future use. This allows subsequent transactions to be processed without the need for the customer to manually provide their card details for each purchase. COF transactions are […]

In payments, Card Verification Value 2 (CVV2), also known as Card Security Code (CSC), Card Verification Code (CVC2), or Card Validation Code (CVC), is a three- or four-digit security code printed on payment cards. CVV2 is an additional security feature used to verify that the person making a Card Not Present (CNP) transaction has physical […]

In the payments industry, Card Present (CP) refers to transactions where the payment card and the cardholder are physically present at the point of sale (POS). It commonly occurs in face-to-face transactions at physical retail stores, restaurants, or any other location where the card can be physically swiped, dipped, or tapped for payment. Here’s how […]

In payments, Card Not Present (CNP) refers to a transaction where the cardholder and the payment card are not physically present during the purchase. It typically occurs in online or remote transactions where the card information is manually entered or provided through other non-face-to-face means. CNP transactions also include phone orders (MOTO – Mail Order/Telephone […]

In payments, a card network refers to a financial network that enables the processing and authorization of electronic transactions made using payment cards such as credit cards and debit cards. The card network acts as an intermediary between the cardholder’s bank (issuing bank) and the merchant’s bank (acquiring bank), facilitating the secure transfer of funds. […]

In the payments industry, a card imprint refers to the physical impression or imprint of a payment card onto a sales slip or a carbon-copy form. It was a common method of processing payments before the widespread adoption of electronic payment terminals. Here’s how card imprinting works: Pros of Card Imprinting: Cons of Card Imprinting: […]

In payments, a Card Association refers to an organization that sets rules, standards, and regulations for the payment card industry. These associations provide the infrastructure and governance necessary for the smooth operation of payment card networks. The two most prominent Card Associations are Visa and Mastercard, but there are others, such as American Express and […]

In payments, “Capture Only” refers to a transaction processing mode where the merchant captures the necessary information to initiate a payment transaction without immediately requesting authorization or settlement. It is commonly used in situations where the merchant needs to gather payment details upfront but wants to delay the authorization and settlement process until a later […]

In payment processing, a cancellation code refers to a unique identifier or code that is assigned to a canceled transaction. When a transaction needs to be voided or canceled, a cancellation code is often used to track and reference the canceled transaction in the payment system. Here’s how it works: Cancellation codes play a crucial […]

The term “brick and mortar” in payment processing refers to traditional physical retail businesses that have a physical presence, such as a physical store, office, or location where customers can visit to make purchases or conduct business. In contrast, online businesses or e-commerce stores that operate solely on the internet are often referred to as […]